Bahamian-based cryptocurrency trade FTX launched an inventory of rules and proposals to assist policymakers construct the regulatory framework. The coverage recommends the market-structure selections made by a number of main crypto exchanges and suggests its implementation throughout all jurisdictions.
FTX shared the “FTX’ s Key Ideas for Market Regulation” weblog after Maxine Waters, the chair of the Home Committee on Monetary Companies, invited a number of CEOs of main crypto companies to testify on the subject of digital belongings and the way forward for finance.
Out of the ten key principles, one of many suggestions requires another regulatory method that proposes a unified regulatory regime for spot and derivatives marketplaces. In response to the weblog:
“The regulatory label on a given product or market needn’t change the core objectives of regulation, and the identical rulesets ought to typically apply throughout all markets.”
FTX additionally explains the necessity for a direct membership market construction, i.e, permitting entities to carry out regulated trades with out the involvement of a 3rd celebration. The trade additionally suggests a regulation demanding larger transparency across the custodians of crypto belongings, arguing that the platform “customers ought to be given visibility” into how custodial providers plan to handle issues associated to fraud and theft.
The weblog additional calls for frameworks for reporting transactional exercise to keep away from market manipulation and guarantee buyer safety. FTX additionally identified the necessity for regulating stablecoin issuance:
“A platform operator that allows the usage of steady cash for settlement of transactions ought to be required to elucidate the requirements the platform operator makes use of in deciding which steady cash it permits for such functions.”
KYC instruments can reduce problem for US crypto market, FTX CEO says
In August, FTX CEO Sam Bankman-Fried introduced the trade’s proactive measures to streamline its Know Your Buyer (KYC) operations.
Citing the significance of KYC instruments for cryptocurrency’s mainstream adoption, Bankman-Fried inaugurated a brand new function on FTX that confirms a person’s jurisdiction primarily based on their registered telephone quantity:
“We test customers’ telephone numbers towards their submitted names in KYC1, with a view to additional confirm them. When this doesn’t work or there isn’t information, we’ll require KYC2 to entry some options of the positioning, together with futures.”
